Alabama

French bank Societe Generale sold its holdings in bankrupt Jefferson County, Ala.'s sewer warrants, and has asked to withdraw from two potentially precedent-setting appeals.

The Internal Revenue Service has closed its audit of $162.53 million of general fee revenue bonds issued by Auburn University, Ala., in 2007 with no change the bonds' tax-exempt status.

Federal Judge Thomas Bennett Friday entered several major orders that chisel away portions of the $1.63 billion class-action suit filed in Jefferson County, Ala.'s Chapter 9 bankruptcy case.

Alabama Gov. Robert Bentley has signed a bill setting up a plan to repay $438 million the state will borrow from the Alabama Trust Fund to prop up the state's general fund budget.

The judge overseeing Jefferson County, Ala.'s bankruptcy case this week began hearings on a $1.63 billion class-action claim seeking to invalidate the county's sewer warrants.

Bankrupt Jefferson County, Ala., reached a settlement with Depfa Bank to reduce the interest rate on $162.5 million of variable-rate school warrants.

Historically low interest rates last year helped boost bond sales across the Southeast to $63 billion, an increase of 33% over 2011. The surge in debt was propelled by refundings.

Bank of New York Mellon's suspension of bankrupt Jefferson County, Ala.'s sewer warrant payments prompted Standard & Poor's to drop its rating to D, while Moody's said investors are now subjected "to the risk of higher losses."

Assured Guaranty said Monday that it disagrees with the trustee for Jefferson County, Ala.'s sewer warrants to suspend payments, and will continue to make good on its insurance policies.

Bank of New York Mellon said Friday that it will stop payments on Jefferson County, Ala.'s defaulted sewer warrants, and will seek court approval to accelerate payment of outstanding principal.

The new sewer rate structure recently approved by Jefferson County, Ala., commissioners is an interim plan that can be altered as creditors negotiate a settlement to restructure more than $3 billion of defaulted debt, the county said.

The United States 11th Circuit Court of Appeals on Tuesday tentatively scheduled oral arguments in the appeal involving Jefferson County, Ala.'s sewer system receiver for the week of June 3. Creditors have appealed a ruling that stripped the receiver of the right to run the county's sewer system.

Birmingham, Ala.-based Regions Financial Corp. has hired two new employees to expand its corporate trust group in the mid-Atlantic region.

Federal bankruptcy judge Thomas Bennett approved the first debt restructuring in Jefferson County, Ala.'s bankruptcy case, for $82.5 million of Ambac-wrapped lease revenue warrants.

In a ruling Wednesday, the federal judge overseeing Jefferson County, Ala.'s Chapter 9 case repeatedly blamed the state of Alabama for precipitating the county's bankruptcy filing in November 2011.

Bankrupt Jefferson County, Ala., is continuing to negotiate with creditors over the disposition of $3.14 billion of defaulted sewer debt.

National Public Finance Guarantee Corp. asked the judge overseeing the Jefferson County bankruptcy to order an examination of the county's budget and financial condition.

Jefferson County officials have proposed a restructuring plan for a small piece of the bankrupt county's municipal debt that financed a courthouse. It's not clear what if anything that means for the county's more than $3 billion in sewer debt.

The 11th Circuit Court of Appeals has accepted an amicus brief from the Securities Industry and Financial Markets Association in appeals of various municipal bond rulings in Jefferson County, Ala.'s Chapter 9 bankruptcy case.

Alabama prices $340 million of new Garvee bonds Wednesday as part of Gov. Robert Bentley's Alabama Transportation Rehabilitation and Improvement Program.